Every three years, the Trustees obtain a full actuarial valuation of the pension scheme from the Scheme Actuary. The main purposes of the valuation are to agree an appropriate funding target with the sponsoring employer, to assess the finanical position of the scheme against the target, and to determine any contributions payable to the scheme by the sponsoring employer.
The finanical position of the scheme at last full valuation effective 1 April 2019 was as follows:
Following the actuarial valuation, the sponsoring employer agreed with the Trustees to pay deficit repair contributions to the scheme (under a formal "Recovery Plan"), with the aim of eliminating the shortfall disclosed at the last valuation over a 7 year period.
The Trustees monitor the funding position of the pension scheme during the inter-valuation period and receive actuarial updates from the Scheme Actuary at least once a year.
The Funding Target (also known as the Technical Provisions) is agreed by theTrustees and the sponsoring employer, after obtaining actuarial advice.
It reflects numerous factors including the membership profile, the scheme's investment strategy, the sponsor covenant and economic conditions.
The scheme assets are taken at market value and are audited independently by the Scheme Auditor.